Unit 1 P6

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The way political, legal and social factors impact businesses in different economies.

The organisation that I have chosen to discuss is McDonalds. The Chinese Economy
Political
In China, families are only allowed to have one child and this is a rule that was passed due to increased population; therefore McDonalds need to focus on making sure they make menus which appeals to not just younger people but adults too, as there will be many more adults than younger people in china. McDonalds will also need to create an environment in which families will feel comfortable in when they have purchased food, with products aimed at both genders of males and females, for the father or mother, son or daughter that may want to eat in the McDonalds restaurants. China used to be a communist country until 1949 however they are not anymore; therefore this will not affect McDonalds in a negative way. Legal

Social
The people in china eat fairly different types of foods compared to the people who are from the United Kingdom. If McDonalds sold the exact same food that they sell in the UK, this wouldn’t have the same affect and the McDonalds in China’s sales would decrease dramatically. McDonalds will need to research what foods and flavours Chinese people like, and then use this information to incorporate them into their foods and drinks when producing the menu’s for the Chinese public. McDonalds also need to make sure that their prices are affordable to make sure that they don’t miss out on the large amount of working class people in china’s very large population. UK Economy

Political
The government in the UK have passed laws which limit McDonald’s to certain things when it comes to dealing with competition. They have done this so that all businesses will stand a better chance of making a profit. This means that McDonalds will have to restrict things such as their pricing and their portion sizes. In order for McDonalds to be affected the least by these laws and...
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